On October 26, in New York, a documentary “Trust Machine: The Story of Blockchain” was presented, an executive producer of which is Joseph Lubin, the co-founder of Ethereum, as well as the founder of blockchain software company ConsenSys,.
The picture written and directed by Alex Winter (Alex Winter) lasts 84 minutes and tells the history of blockchain starting from creating Bitcoin to a distributed ledger.
The fil depicts the 2008 global financial crisis, which became the reason for mysterious Satoshi Nakamoto to develop an open distributed ledger for transactions. Initially, BTC was used in illegal transactions on the Internet, thus earning a bad reputation, which it is still trying to get rid of.
The documentary tells about revolutionary potential of blockchain technology and notes that for most people cryptocurrencies are attractive as an opportunity to become rich.
The current condition of the cryptocurrency market raises a number of question from traders. For the third day, the industry is either trying to revive Bitcoin and other cryptocurrencies, or just watching the collapse of the course. The question of what caused the collapse of the market and what should do those who still have cryptocurrency – makes world crazy. That is why, The Coin Shark have found answers for all of these questions and analysed per minute history of the fall of currency of Bitcoin.
The Chronology of the fall from 14th to 16th November
Wednesday, November,14 , Bitcoin break another 2018 bottom. According to data of CoinMarketCap, at 11:34 UTC the rate of the first cryptocurrency behaved stably, being at $6 365. Nothing foretold troubles, but at 17:19 UTC began unexpected fall, which last till the 19:19 UTC, where the price of BTC remained in half-dead condition at $5 765. Therefore, the capitalisation of the marked fell to $102 billion. After that, Bitcoin started to resist. In 20:04 UTC the currency show vital signs, increased to $5 858. But still, the end of 14th November was not a happy ending. In 22:48 UTC was settled a new record – $5 568.
If compare the data with an individual market, then on a Bitstamp the price of the BTC has already dropped to $5 534, and on the Kraken – $5 510. Last two weeks, Bitfinex exchange trade Bitcoin more than $6 000 per each unit. It turned out, that the 14th of November was still far from the end of BTC fall. According to CoinMarketCap, Thursday, November, 15, at 17:04 UTC, Bitcoin shocked everybody with the course of $5 358. On Bitstamp the first cryptocurrency down to $5 446, and on the Bitfinex – $5 638. At this point, this is the lowest course from the end of October, 2017.
The condition of the cryptocurrency market for the last year is unstable. It is accompanied by unexpectable highs, as well as painful falls. But not only Bitcoin drop it’s price position on 14th of November. Together with it, into a deep red zone came the major part of other cryptocurrencies. In doing so, the total capitalisation fell by $190 billion.
At the writing of this article, 16th of November, the condition of the cryptocurrency market is still in critical position – the course of Bitcoin stood at $5 500, and Ethereum backed down the second place in capitalisation Ripple.
What caused the collapse?
Just think about it, less than 24 hours ago, it was possible to sell the BTC on a thousand dollar higher. Probably, it is impossible to define why “the foundation was cracked” under the cryptocurrency, as for the example it can be done in a regular market. In the digital, the effect is first seen and only than the reason becomes known.
Reason #1: Contagious effect
On the basis of past, the cause of the fall have psychological nature. For example, people are massively starting to buy cryptocurrencies or fanatically selling.
Reason #2 : Direct correlation
Each financial currency pegged to its government, as for the example dollar – to the US economy. Cryptocurrency pegged with the people, which are both buying or selling it.
Reason #3: Global Bitcoin influence
Ironically, but there is a theory, that the general condition of the cryptocurrency is affected by Bitcoin. The value of all digital market is estimated in $182 billion, the $90 billion of which belongs to BTC. The majority of cryptocurrencies should be transferred especially in Bitcoin, before the sale. And now imagine, that selling of Bitcoin will start simultaneously several major players of the market. After this, the BTC prices are lowering, and this cause the panic attacks more than ones: “ Buy everything and as quickly as possible, while the price is low!” – this makes the course to grow.
What should do the owners of cryptocurrency: sell or wait?
It depends on the inner aspects of each owner. Even when the course is rising – it still have cycles of fall.
Who and how will affect the collapse of rate?
Cryptocurrency is the unstable tool. It’s system decentralised and doesn’t have the management center. Digital currency should strengthen the positions, so it can give the accurate forecast for the future. But, it appeared, that this fall will have no affect on ordinary users. There is no denying, that in a consequence many crypto-business will close. Cryptocurrency exchange are in the minimum risk area, as in such cases the number of transaction increases. Most of all, miners and the owners of the mining field will suffer the most. Since, the profitability depends on the price of extracted cryptocurrency. Within recent events, it is clear that mining is unprofitable occupation.
One of the main “fights” has started between the CEO of Bitmain Jihan Wu and a computer scientist Craig Wright, who have repeatedly gone at each other on the social media, claiming that their vision of Bitcoin’s future is correct. Later on, the “war” was joined by John McAfee who supported Jihan Wu.
Those who stand against Jihan Wu are a idiots who don't see the realities of the playing field. Please, get real. I will not let my ego destroy me by making me think I could challenge the only real power in this space. My email to him should make it clear to anyone where I stand. pic.twitter.com/WJBJyzaEAy
According to the local news outlet, the enforcement agencies in Tokyo took 8 people in custody in connection with their possible participation in a gigantic pyramid scheme involving cryptocurrencies.
The police state that almost 6 thousand people became victims of the scheme and lost their crypto. The total amount of money stolen amounted to whopping 7.8 billion Japanese yen (almost 70 million dollars). Allegedly, the fraudsters were organizing different events and seminars and raised funds there, promising a huge return on the “investments”.
Out of 8 arrested people, 6 have already pleaded guilty. They will be charged with the violation of multiple financial regulations of Japan.
As soon as the network of Bitcoin Cash ABC started functioning, a huge amount of small-sized transactions (costing less than 0.5 BCH altogether) started happening. Moreover, they seemed to be coming between the same digital addresses, which proved them to be spam.
Although, this attack could not harm BCH ABC considerably, if it happens again and continues happening over time, it could potentially bring the whole network down. The rumors about the possible involvement of the team BCH CV have already started spreading.
But they did. They hacked the account of Google. According to the report by The Next Web, one of the official account of Google on Twitter, GSuite, became another victim of the hackers trying to endorse their fake Bitcoin giveaway.
The representative of Google stated the following:
“This morning an unauthorized promoted tweet was shared from the G Suite account. We removed the tweet and are investigating with Twitter now.”
Recently, one of the major crypto exchanges, Binance, has published a notice which says, Binance will open two new pairs for trading on November 17. Interestingly, those two pairs include a new-comer – USDC – stablecoin backed by Circle.
The trading pairs are USDC/BNB and USDC/BTC; the trading starts at 2018/11/17 03:00 AM (UTC). However, users are already able to deposit stablecoin in advance.
Moreover, Binance wrote there would be a “top-ranking auditing firm” to preserve the transparency of the stablecoin. Every month, the firm is bound to provide data of “the corresponding USDC and USD balances held/issued.”
We want to remind you, such crypto exchanges as OKEx, Huobi, BitPay, Coinbase have already listed USDC stablecoin on their listings.